Dominion Energy (NYSE:D) & Iberdrola (OTCMKTS:IBDRY) Head-To-Head Contrast

Iberdrola (OTCMKTS:IBDRY) and Dominion Energy (NYSE:D) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Iberdrola and Dominion Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iberdrola	1	4	2	1	2.38
Dominion Energy	1	8	3	0	2.17

Dominion Energy has a consensus target price of $65.20, suggesting a potential upside of 7.08%. Given Dominion Energy’s higher probable upside, analysts clearly believe Dominion Energy is more favorable than Iberdrola.

Insider & Institutional Ownership

0.0% of Iberdrola shares are owned by institutional investors. Comparatively, 73.0% of Dominion Energy shares are owned by institutional investors. 0.1% of Dominion Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Iberdrola and Dominion Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iberdrola	13.74%	10.38%	3.94%
Dominion Energy	18.05%	9.67%	2.70%

Risk & Volatility

Iberdrola has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Dominion Energy has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Dividends

Iberdrola pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Dominion Energy pays an annual dividend of $2.67 per share and has a dividend yield of 4.4%. Iberdrola pays out 43.0% of its earnings in the form of a dividend. Dominion Energy pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Iberdrola and Dominion Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iberdrola	$51.52 billion	2.89	$7.11 billion	$4.19	21.06
Dominion Energy	$16.51 billion	3.24	$3.00 billion	$3.44	17.70

Iberdrola has higher revenue and earnings than Dominion Energy. Dominion Energy is trading at a lower price-to-earnings ratio than Iberdrola, indicating that it is currently the more affordable of the two stocks.

Summary

Iberdrola beats Dominion Energy on 10 of the 17 factors compared between the two stocks.

About Iberdrola

Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. It generates electricity from renewable sources, such as onshore and offshore wind, hydro, photovoltaic, combined cycle gas, and conventional nuclear, as well as through batteries. The company is also involved in the purchase and sale of electricity and gas on wholesale markets; energy retail supply activities, such as gas and electricity, and other products and services, including hydrogen, as well as non-renewable generation; and production of green hydrogen. It has a total installed capacity of 62,871 MW. In addition, the company offers heat pumps, self-consumption, electric mobility, solar, etc. services to residential customers; and management of energy facilities, as well as supplies green H2, industrial heat, etc. to industrial customers. Iberdrola, S.A. was founded in 1840 and is based in Bilbao, Spain.

About Dominion Energy

Dominion Energy, Inc. produces and distributes energy in the United States. It operates through three operating segments: Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy. The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to approximately 2.8 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The Dominion Energy South Carolina segment generates, transmits, and distributes electricity to approximately 0.8 million customers in the central, southern, and southwestern portions of South Carolina; and distributes natural gas to approximately 0.4 million residential, commercial, and industrial customers in South Carolina. The Contracted Energy segment is involved in the nonregulated long-term contracted renewable electric generation and renewable natural gas facility. As of December 31, 2023, the company's portfolio of assets included approximately 29.5 gigawatt of electric generating capacity; 10,600 miles of electric transmission lines; 79,300 miles of electric distribution lines; and 94,800 miles of gas distribution mains and related service facilities. The company was formerly known as Dominion Resources, Inc. Dominion Energy, Inc. was incorporated in 1983 and is headquartered in Richmond, Virginia.